Controlling Powers/Voting Rights
This query is : Resolved
Rupesh Chokshi
(Querist)
23 December 2009
Dear Sir/Mam
I would like to know that whether BOD/Shareholder/Promoter of private company can retain its controlling powers with them even after reducing their share holding from 100% to 49% i.e. by transferring their 51% shares to a public limtied company.
Can they have controlling powers by having max. number of directors in new Board or by having voting bank with them.
Note:- Shares means equity shares.
Regards
I would like to know that whether BOD/Shareholder/Promoter of private company can retain its controlling powers with them even after reducing their share holding from 100% to 49% i.e. by transferring their 51% shares to a public limtied company.
Can they have controlling powers by having max. number of directors in new Board or by having voting bank with them.
Note:- Shares means equity shares.
Regards
CS Pawan Kumar Baid
(Expert)
23 December 2009
If a public ltd company acquires more then 50% of nominal capital of pvt company, then it is deemed as subsidiary and hence it will also be a public company.
At General meeting, if any matter is put to vote, then voting power is deciding factor.
Regards
CS Pawan Kumar Baid
At General meeting, if any matter is put to vote, then voting power is deciding factor.
Regards
CS Pawan Kumar Baid
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